Busting Remortgaging Myths: Separating Fact from Fiction

If you've had your mortgage for a few years, you've probably heard plenty of advice about remortgaging. Unfortunately, not all of it is true. Common myths can stop homeowners from exploring options that could save them money or better suit their changing circumstances.

Let's bust some of the biggest remortgaging myths.

Myth 1: You Have to Stay with Your Current Lender

Fact: You don't.

When your current mortgage deal comes to an end, you're free to shop around. While your existing lender may offer you a new deal, it's always worth comparing the wider market. Different lenders have different criteria, products, and rates, and another lender may offer a deal that's better suited to your needs.

Working with a mortgage broker can help you compare options and find the most suitable mortgage for your circumstances.

Myth 2: Remortgaging Is Too Much Hassle

Fact: The process is often much simpler than people expect.

Many remortgages don't involve moving home or lengthy paperwork. In fact, much of the application can be completed online or over the phone, and a broker can handle much of the administration on your behalf.

Depending on your circumstances, the process can be straightforward and stress-free.

Myth 3: You Should Wait Until Your Deal Ends

Fact: It pays to plan ahead.

Many lenders allow you to secure a new mortgage several months before your current deal expires. Starting the process early gives you time to compare options and avoid automatically moving onto your lender's Standard Variable Rate (SVR), which is often higher than fixed-rate deals.

Planning ahead can help ensure a smoother transition and potentially save you money.

Myth 4: Remortgaging Is Only About Getting a Lower Interest Rate

Fact: There are many reasons to remortgage.

While securing a better interest rate is a common reason, homeowners also remortgage to:

• Reduce their monthly payments.

• Borrow additional funds for home improvements.

• Consolidate existing debts (where appropriate).

• Move to a mortgage that better suits their financial goals.

• Release equity from their property.

The right solution depends on your individual circumstances and long-term plans.

Myth 5: You Can't Remortgage If You're Self-Employed

Fact: Self-employed borrowers have plenty of options.

Whether you're a sole trader, company director, contractor or freelancer, there are lenders who specialise in working with self-employed applicants.

Although you'll usually need to provide evidence of your income, being self-employed doesn't automatically prevent you from securing a competitive mortgage.

Myth 6: Remortgaging Always Costs a Fortune

Fact: Not necessarily.

Some remortgage products include incentives such as:

• Free property valuations.

• Free legal work or cashback towards legal fees.

• Product options with low or no arrangement fees.

It's important to look at the overall cost of the mortgage rather than focusing on one fee alone.

Myth 7: If Your Circumstances Have Changed, You Won't Be Accepted

Fact: Every lender has different lending criteria.

Perhaps you've changed jobs, become self-employed, started a family, or your income has increased or decreased since taking out your original mortgage.

A change in circumstances doesn't automatically mean you can't remortgage. An experienced mortgage broker can help identify lenders that are likely to be a good fit for your situation.

Myth 8: My Mortgage Will Automatically Stay Competitive

Fact: Mortgage products change regularly.

If you don't review your mortgage when your fixed-rate period ends, you could move onto your lender's Standard Variable Rate, which may be more expensive than other available options.

Regular mortgage reviews can help ensure your mortgage continues to meet your needs.

Is It Time to Review Your Mortgage?

Every homeowner's situation is different, and the right remortgage depends on your personal circumstances, financial goals and future plans.

If your current mortgage deal is coming to an end in the next few months, now could be the perfect time to review your options. Exploring the market early gives you more choice and helps you avoid last-minute decisions.

As a mortgage broker, I'm here to guide you through the process, explain your options in plain English, and help you find a mortgage that's right for you.

Get in touch today for a friendly, no-obligation mortgage review and let's see what options may be available.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Think carefully before securing other debts against your home. Consolidating debt may increase the total amount you repay over the term of the mortgage.